Ethiopia Receives $464 Million IMF Disbursement and €80 Million Italian Funding for Reform Program

The International Monetary Fund's Executive Board approved a new disbursement of about $464 million to Ethiopia after the fifth review of its Extended Credit Facility program. The funding brings total IMF resources to roughly $2.65 billion since the programme began in July 2024 and is intended to back Ethiopia’s macro‑economic reforms, improve fiscal sustainability, and mitigate external shocks, including a $200 million advance to offset the impact of the Middle‑East conflict on fuel imports and financing needs. The IMF noted progress in export performance, tax revenue, foreign‑exchange reserves, and debt‑restructuring negotiations.

Separately, the Ethiopian government and Italy signed an €80 million financing package – a €70 million concessional loan from Italy’s Revolving Fund for Development Cooperation and a €10 million climate grant – to support Ethiopia’s Homegrown Economic Reform Program and its ten‑year development plan. The aid aims to strengthen macro‑economic stability, promote private‑sector‑led growth, and enhance climate‑resilient development in key sectors such as energy, agriculture and water, benefitting millions of Ethiopians, especially in rural and vulnerable communities.